Home Foreclosure Help

If you are a Tacoma homeowner facing foreclosure, it can be one of the most stressful and overwhelming experiences. A home foreclosure attorney can help you explore all the legal options available so you can fight to keep your home.

Understanding Washington foreclosure laws and working with an experienced attorney can make a big difference in the outcome of your case.

Foreclosure is the legal process that allows your lender to repossess your home when you fail to make the mortgage payments. In Pierce County, including Tacoma, most foreclosures follow a nonjudicial process, meaning they happen without any court intervention. Even so, there are legal avenues you can take to challenge the foreclosure or negotiate alternatives.

• Nonjudicial Foreclosure (RCW 61.24): This is the most common type of foreclosure, requiring a lender to follow specific legal steps, including serving a Notice of Default and a Notice of Trustee’s Sale, before they can sell the home.
• Judicial Foreclosure (RCW 61.12): This is a less common process that involves a lawsuit filed by the lender in court. If granted, you have up to 8 months to redeem the property, according to RCW 6.23.020.

• Right to Cure (RCW 61.24.090): Before the home is sold, you have the right to catch up on missed payments and stop the foreclosure proceedings. This needs to be done 11 days before the sale.
• Right to Redemption: In some cases, you may repurchase your property after the foreclosure.
• Mediation Programs (RCW 61.24.163): Washington State allows you to request mediation to negotiate with your lenders for loan modifications.
• Bankruptcy Protections: Filing for Chapter 7 or Chapter 13 bankruptcy can delay or prevent foreclosure.
• Notice Requirements (RCW 61.24.030): Lenders must provide you with ample warning before proceeding with a foreclosure and send a Notice of Default at least 30 days before issuing a Notice of Trustee’s Sale.
• Notice of Trustee’s Sale (RCW 61.24.040): This should be sent to you at least 90 days before the sale date.
• Deficiency Judgment Protections: Washington has laws that limit the lender’s ability to pursue additional funds after the foreclosure.
• Sales Process: The property is auctioned if you don’t cure the default.

• Missed Payments: After three to six months of missed payments, the lender will issue a Notice of Default. This notice is recorded with Pierce County, published in a local newspaper, and sent to you and other interested parties.
• Notice of Trustee’s Sale: If the default isn’t resolved, the home is then scheduled for auction.
• Auction Sale: The property is sold to the highest bidder if no agreement is reached. Once the auction is done, the new owner takes possession of the property.
• Eviction Process: You will then be required to vacate the property if you don’t redeem it or make alternative arrangements. If you don’t leave the home, the new owner will have to issue a notice to vacate and follow proper eviction procedures, including filing an unlawful detainer action to force you out.

Filing for bankruptcy can provide you with temporary but crucial relief when you are facing foreclosure. Whether it’s Chapter 7 or Chapter 13, both can stop the foreclosure in different ways, giving you the chance to catch up on payments, restructure your debt, or even eliminate some liabilities.

When you file for bankruptcy, an automatic stay (11 U.S.C. § 362) goes into effect right away. This stops all collection efforts, including foreclosure actions.

• Chapter 7 Bankruptcy: If you can’t resolve your mortgage arrears, the lender may resume the foreclosure proceedings once the bankruptcy is discharged, unless you reaffirm the debt or reach a repayment agreement.
• Chapter 13 Bankruptcy: In Chapter 13, you can propose a repayment plan to reorganize and pay off your debts, including any past-due mortgage payments, over 3 to 5 years. The foreclosure process can be stopped entirely if you continue making all the payments in your plan.

An experienced home foreclosure attorney in Tacoma can guide you through the legal process and offer you strategies on how to protect your home. Bankruptcy can be an effective tool for stopping foreclosures in Washington State, especially if you wish to keep your home.

Consulting one of our skilled attorneys will help you get on the right path. We can help determine the right course of action tailored to your situation and guide you toward a more favorable outcome.

When a home owner stops making a mortgage payment, the remedy for the mortgage company is to foreclose the property. A foreclosure is a process where the mortgage company forces the property to be sold at auction so the mortgage can be paid by the sale. A bankruptcy can stop this process up to the point of the sale. Either a Chapter 7 or Chapter 13 bankruptcy can stop the foreclosure, but only the Chapter 13 offers a way to stop the process and allow the homeowner to catch up on the payments over time.

Most foreclosures in Washington are non-judicial foreclosures. That means a trustee sells the property without a court order. The formal process starts when the mortgage company sends a notice of default to the homeowner. They usually send some warning letters first. In Washington, before they send the notice of default, they also have to give you an opportunity to meet with an agent of the mortgage company to discuss options such as a modification, a cash-for-keys agreement, or a short sale — along with discussing the possibility that they were wrong about the default in the first place. This requirement that they offer the meeting can delay the process. If you are behind on mortgage payments and don't get a letter offering a meeting, you should request one unless you want the property sold as soon as possible. After the meeting, you also have the chance to request mediation, which can slow the process down even more. This request for mediation has to come through an attorney or a certified housing counselor.

You can still pursue a modification through the HAMP program after filing either a Chapter 7 or Chapter 13 bankruptcy. Often using a bankruptcy to clear up debt will help you qualify for a modification.

A Chapter 7 bankruptcy will stop a foreclosure but the mortgage company can start the process up again with court permission, which can be obtained in as little as a month. Sometimes a Chapter 7 trustee will want to sell the property in a short sale, getting the mortgage company to accept less in the sale so the trustee can pay unsecured creditors from the sale proceeds. This process could allow you to stay in the property even longer but there is not guarantee of that.

A Chapter 13 plan allows you to catch up on the mortgage over five years. You have to be able to make the current mortgage payment and pay an additional amount to catch up entirely within five years. You can consolidate all your debt in a Chapter 13 plan, including the current mortgage and back payments. With this improved cash flow, if you have fallen behind but are not in a position to catch up over time, a Chapter 13 can be a powerful tool to help you save your home.

If you have questions or concerns about home foreclosure in Washington, contact the trusted bankruptcy attorneys at Washington State Attorneys.